Chapter 7.32
ADMISSIONS AND AMUSEMENT TAX
Sections:
7.32.020 Admissions and amusement tax levy.
7.32.030 Additional tax for reduced charge or free admission.
7.32.010 Definitions.
The term “admission and amusement charge,” unless expressly provided otherwise, means a charge for:
A. Admission to a place, including any additional separate charge for admission within an enclosure;
B. Use of a game of entertainment;
C. Use of a recreational or sports facility;
D. Use or rental of recreational or sports equipment; and
E. Merchandise, refreshments or a service sold or served in connection with entertainment at a nightclub or room in a hotel, restaurant, hall, or other place where dancing privileges, music or other entertainment is provided. (Ord. 2021-36, 2021/prior code § 11A-11)
7.32.020 Admissions and amusement tax levy.
A. There is levied a tax at the rate of 10% of gross receipts derived from any admission and amusement charge in the City.
B. If gross receipts subject to the admissions and amusement tax are also subject to the State of Maryland sales and use tax, the total combined admission and amusement tax and sales and use tax shall not exceed 10% of the gross receipts.
C. The admissions and amusements tax levied by this chapter shall be collected by the Comptroller of the State of Maryland. (Ord. 2021-36, 2021/prior code § 11A-12)
7.32.030 Additional tax for reduced charge or free admission.
A. There is levied an admission and amusement tax on a reduced charge or free admission at the following rates:
1. $0.05, if the charge for any other admission is $0.50 or less;
2. $0.10, if the charge for any other admission is more than $0.50, but does not exceed $1.00; and
3. $0.15, if the charge for any other admission is more than $1.00.
B. The additional tax levied by this section shall be collected by the Comptroller of the State of Maryland. (Ord. 2021-36, 2021/prior code § 11A-13)
7.32.040 Exemptions.
No admissions and amusement tax shall be levied or collected on gross receipts:
A. Derived from any charge for merchandise, refreshments or a service sold or served at a place where dancing is prohibited and the only entertainment provided is mechanical music, radio or television;
B. Derived from any charge for admission to a live boxing or wrestling match; or a concert or theatrical event presented or offered by a nonprofit group that is organized and operated to present or offer an annual series of scheduled musical concerts or is organized and operated for a cultural purpose and receives a grant directly or indirectly from the Maryland State Arts Council;
C. Derived from any charge for admission to or use of:
1. A facility or equipment in connection with a bingo game that is operated in accordance with Section 13-1803 of the Criminal Law Article of the Annotated Code of Maryland;
2. A bowling alley or lane; or
3. A charter fishing boat;
D. Derived from any charge for admission or for merchandise, refreshments or a service, if the gross receipts are used exclusively for:
1. A charitable, educational or religious purpose;
2. A volunteer fire company or nonprofit rescue squad;
3. A fraternal, service or veterans’ organization chartered by a grant of Congress; or
4. The improvement, maintenance, or operation of an agricultural fair, if no net earnings inure to the benefit of any stockholder or member of the association that conducts the fair;
E. Derived from any charge for admission or for merchandise, refreshments or a service, if the gross receipts are used exclusively for community or civic improvement by a nonprofit community association that is organized and operated to promote the general welfare of the community that the association serves and the net earnings of which do not inure to the benefit of any stockholder or member of the association;
F. Derived from any charge for admission to a concert or theatrical event of a nonprofit organization that is organized to present or offer any of the performing arts. (Ord. 2021-36, 2021/prior code § 11A-14)